Needham analysts report that ICU Medical (Nasdaq: ICUI) has a plan in place to handle its exposure to the tariffs imposed by the Trump Administration.
Medtech stocks already took a hit last month as in response to Trump’s tariff policies. Trump’s rollout of new taxes on imports from nearly all countries last week triggered the latest market dip.
Mike Matson, Joseph Conway and David Saxon covered the tariffs, among other topics, with ICU Medical leadership in a fireside chat at the 24th Annual Needham Healthcare Conference. (Read more about the impact of the tariffs on the medtech industry here.)
According to the analysts, ICU faces “relatively low” tariff exposure, but management still has efforts underway to mitigate any impact. The company’s largest exposure comes in Mexico, but management feels the company sits “relatively in a good position.” It has three separate facilities in Mexico manufacturing the majority of its consumables, plus nearly all Smiths Medical products (such as infusion devices, vascular access offerings and vital care products.
The analysts say ICU Medical believes it remains shielded from the full impact of tariffs, though. It attributes this to compliance with the United States-Mexico-Canada Agreement (USMCA). The company sized its remaining impact at $20 million or less annually.
ICU Medical believes it can mitigate the impact over time through a chain of custody changes, ensuring international products aren’t routed through the U.S. Management also pointed to the potential impact of an across-the-board 10% tariff. The company expects that to mainly impact Costa Rican imports, but didn’t quantify the potential effect.
Otherwise, management touted recent FDA clearance for new infusion technologies and strength in the company’s consumables business. ICU Medical also plans to file for approval of a next-generation Medfusion syringe pump in the second half of this year. It also has eyes on a submission for a next-generation ambulatory pump after that.
